SASSA REPORT HIGHLIGHTS PROGRESS AND GAPS IN SOUTH AFRICA’S SOCIAL ASSISTANCE PROGRAM

By Morapedi Sibeko

• South Africa’s social assistance program, outlined in the latest SASSA report, highlights efforts to address poverty and inequality through targeted social grants.
• Despite progress, such as an improved online application process and diverse payment options, the report identifies gaps in accessibility and administrative efficiency, particularly affecting foster care and disability grants.
• These findings underscore the need for enhanced digital access, especially in rural areas, and streamlined processes to ensure timely, equitable support across all demographic groups.

Social assistance plays a critical role in South Africa, given the country’s high levels of inequality and poverty. The South African Social Security Agency’s (SASSA) Sixth Statistical Report for 2024/25 provides a comprehensive overview of the social assistance landscape as of September 2024, highlighting new developments and ongoing initiatives.

According to Ms. Raphaahle Ramakgopa, Executive Manager of Strategy and Business Development at SASSA, the report analyzes whether social grants effectively alleviate economic hardship, examines the geographic distribution of aid, and evaluates how well grants address disparities across demographic groups. By continually analyzing social assistance data, South Africa can make informed decisions to develop more equitable, sustainable, and focused welfare policies.

The report is essential for assessing the sustainability and effectiveness of social assistance initiatives. Ramakgopa notes that it aids in tracking the impact and long-term viability of these programs. Specifically, the report provides insight into spending, the number of beneficiaries, and emerging patterns in aid requirements.

The report points to recent improvements, such as a more accessible online application process and flexible payment options, which have enhanced system efficiency and given beneficiaries more choices for receiving grants. These changes improve the effectiveness and responsiveness of social assistance, strengthening support for individuals in need nationwide.

One of the main social grants, the Old Age Grant, aims to provide a safety net for older people who lack other income options in retirement. By the end of September 2024, 4,075,118 people were receiving this grant, marking a notable increase and reflecting the government’s commitment to addressing senior citizens’ financial needs. This emphasis on the welfare of older citizens underscores the government’s recognition of their value and its efforts to improve their quality of life.

To increase accessibility, SASSA has introduced several payment options. By the end of September 2024, shifts in the payment landscape demonstrated changing preferences among beneficiaries and ongoing adjustments by financial institutions. About 73% of recipients now opt for bank payments, with Grindrod Bank seeing an increase of 12,898 recipients and banks gaining 49,192 new beneficiaries. Conversely, Postbank saw a decline, with 53,490 fewer recipients choosing this option.

Hurdles remain in grant administration. Expired court orders have increased by 34%, creating delays in Foster Care Grant disbursements and signaling the need for expedited processes and effective monitoring to ensure timely payments.

In 2020, SASSA launched an online application system to streamline the grant application process. By September 2024, 90,428 online applications had been processed. Notably, the City of Tshwane led in Gauteng with 13,973 applications, followed by Ekurhuleni (7,505) and the City of Johannesburg (5,214). These figures highlight the increasing role of digital platforms in expanding reach and simplifying the application process, particularly in cities where internet access is growing.

While online applications represent progress in accessibility, SASSA acknowledges the need for further improvements, particularly in rural areas where internet connectivity is still limited.

Despite their importance to many South African families, the uptake of the Child Support Grant dropped by 0.1% this quarter, just missing the target of 13,367,323 recipients. The Disability Grant also missed the goal of 1,075,675 beneficiaries, with a decline of 0.2%. However, the Foster Care Grant showed a positive trend, increasing by 0.48% and reaching its second-quarter target of 270,358 recipients.

By the end of September 2024, the Extended Child Support Grant (CSG), which provides additional support for orphans, reached 79,971 recipients, meeting 95.9% of its target of 83,390 for the second quarter. Although more progress is needed to meet all targets, this was a 4.3% increase from August 2024, reflecting ongoing efforts to support orphans.

The Disability Grant, important to many South Africans, decreased by 0.2% this quarter, missing the target of 1,075,675 recipients. By the end of September 2024, SASSA had issued 223,048 Temporary Disability Grants (TDG) and 837,797 Permanent Disability Grants (PDG). While TDG payments dropped by 1.43% from August 2024, PDG payments saw a slight increase of 0.13%, indicating some stability.

Provincial trends show varied changes in grant distribution. Over the last three months, the Eastern Cape and Gauteng experienced gains in PDG alone, while Limpopo saw increases in both PDG and TDG. In KwaZulu-Natal and Mpumalanga, PDG increased while TDG decreased, mirroring the pattern in Limpopo. In contrast, the Northern Cape experienced a drop in TDG, and both TDG and PDG declined in the Western Cape.

The report emphasizes the importance of improving communication, addressing processing delays, and expanding digital application use. For SASSA to meet the growing need one for social assistance, enhancing institutional coordination, streamlining procedures, and ensuring grant accessibility for all eligible citizens—especially those in rural and underserved communities—are essential.